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Industry

Terms:- Meanings of the commonly used terms are given below:


1.

Industry:

A manufacturing unit is known as industry.

2.

Primary Industry:

Any extractive industry, including mining, quarrying, agriculture, Fishing and Forestry are also
included in it as they involve in extraction of resources also.

3.

Secondary Industry:

In this type the raw materials are processed or components are assembled.

4.

Tertiary Industry:

This industry supply services like retailing.

5.

Quaternary Industry:

This is concerned with the professions and these services that require a high level of skills,
expertise and specialization. It includes education, research and development, administration and
financial services such as accountancy.

6.

Manufacturing Industry:

Industries, which produce or assemble manufactured products are known as manufacturing


industries and the goods produced by these industries are known as final products. The final
product is such a product in which further processing is not possible.

7.

Processing Industry:

The industry, which involves in changing of raw material into machine able form, is known as
processing industries e.g. cotton ginning.

8.

Heavy Industry:

Industries producing capital goods or machinery are known as heavy industries. e.g. Pakistan
Machine tool Factory.

9.

Capital Intensive Industry:

These industries are more machine oriented and more capital intensive or require more money to
set up the industry.

10.

Labour Intensive Industry:

The industries which require more working hands and less automation. They are known as labor
intensive industries.

11.

Raw Material Oriented Industry:

The industries which are established at the place of raw material. e.g. Sugar Industry.

12.

Market Oriented Industry:

Business is one which carries out market research to find out consumer wants before a product is
developed and produced.

13.

Raw Material:

A product obtained directly from the ground or Sea. e.g. farming, forestry, mining.

14.

Agro-based Industry:

Industries which use agricultural products as their raw materials are called agro-based industries.

15.

Cottage Industry:

The industries in which the owner is self employed and helped by the family members only.

16.

Small Scale Industries:

In such industries mechanical power is used with a limited number of hired labor along with the
family members. If electricity is used, then the number of workers are 20 and if not used then the
number of workers are 50.

Factors influencing the Location and Development of Industries:

A.

Natural Factors:

1.

Cheap, Flat and well drained land accessible easily through natural routes.

2.

Moderate / tolerable climate.

B.

Human Factors:

Availability of:
1.

Capital

2.

Labor

3.

Raw material

4.

Power supply

5.

Infrastructure Facilities ( Gas, Water ).

6.

Efficient Transport

7.

Industrial Estate

8.

Government Policies

Industry As A System

Inputs Processes

Outputs

Natural / Physical

e.g.

Processed goods such as

Flat Land (cheap & well drained)


Natural routes Weaving

Smelting

Cement, Ghee, Soft drinks,

Packets of tea.

Climate (moderate)

Spinning

Manufactured goods such as

Human Factors

DyeingDrugs, Fans.

Capital Printing

Garments, Motor cycle.

Labor Knitting

Flowers.

Raw Material Stitching


Power Supply Tanning
Infrastructure Facilities (Gas & water)
Efficient Transport

etc.

Industrial Estate
Government Policies
Machinery

By Products

Profit

Molasses. Bagasse

Profit invested back into inputs

Sugar Industry(Raw Material Oriented)

Moulding

It is important an agro based and biggest industry of Pakistan. Sugar cane and Beet are the main
raw material of sugar industry. After the partition in 1947 there were only 2 sugar industries in
Pakistan namely Rahwali (Gujranwala) and Takht Bhai (Mardan). At present 78 sugar plants are
working in different parts of the country (Punjab 40, Sindh 32, NWFP 6 and no sugar mill in
Baluchistan).

In Punjab most mills are along the eastern side where main sugar cane growing belt is located.
Some are located towards the western side.

In NWFP 6 sugar industries are working, 2 industries based on sugar cane and the remaining on
Sugar Beet. In NWFP, Sugar Mills are located towards the western and upper parts where as in
Sindh most are located in the central and lower parts.

Sugar Industry As A System

Inputs Processes

Outputs

Natural / Physical

e.g.

White sugar

Flat Land (cheap & well drained)

Washed

Water Crushed
Climate (moderate)

Juice Collected

Human Factors

Refined

Capital Crystallized
Labor (Skilled & unskilled) Whitened / made into white sugar
Raw Material(Sugar cane)

Molasses / brown sugar

Power Supply Bagasse produced (a waste product)


Machinery

etc.

Efficient Transport
Packing Material
Government Policies

By Products

Profit

Molasses. Bagasse
Press mud.

Profit invested back into inputs

______________________________________________________________________________

Uses of By Products: (Sugar Mill)


Bagasse:-

Used as a fuel

Can be used to generate electricity


Animal feed
Made into chipboard / paper.

Molasses:-

Used to manufacture various types of acids in the chemical industry.

Press Mud:-

Used to make the soil fertile after mixing in soil by farmers.

Study Fig.1, which shows the location of Sugar mills in Pakistan.

Fig.1

Q.1.

Describe the distribution of the sugar mills.

Ans.

Widespread / from north to south.

Along the rivers.


Especially in east.
Upper Indus Plain / Punjab.
Lower Indus Plain / near the Indus in Sindh
A few in NWFP.
None in Balochistan.
None in extreme north.

Q.2.

Explain why sugar mills must be close to areas of sugar cultivation.

Ans.

Must be crushed quickly after / within 48 hours of harvesting / cutting.

Rapid loss of weight after cutting.


Rapid loss of sugar content.
Keep down transport cost as bulky / heavy.

Q.3.

What happens to sugar cane from the time it is fully grown to when sugar juice is

extracted?
Ans.

Cut by hand / manual labor

Transported by bullock cart / lorry / truck


Quickly transported
Scrubbed with chalk to remove dirt and smell
Crushed to remove juice in heavy rollers.

Q.4.

Select a sugar mill at one of the following locations:

Faisalabad
Ans.

Mardan

Thatta Jhang

Flat site on Indus plain (valley floor) in vale of Peshawar

Sugarcane grown in area around mill


Power provided by use of bagasse a by product of sugar industry
Power provided by HEP
Water from River Swat / canal / River Indus / Lake Haleji
Skilled labor trained at universities / colleges in Pakistan / abroad
Cheap labor (unskilled) nearby towns
Machinery imported / made in Taxila
Financial backing from government / banks / foreign investors
Good network of road.

Q.5.

At sugar mills the milling season lasts only 160 days. What problems does this cause

and how might they be overcome?


Ans.

Problems

Seasonal employment / unemployment for rest of year


Skilled workers may be lost to other industries permanently / shortage of labor
Machinery deteriorates with lack of use.
Solutions
Develop industries using the by products
Casual labor migrate to other employment / work in cottage industries
Offer incentives to keep / attract labor.

Q.6.

Explain the causes of sugar crises in Pakistan .

Ans.

1.

Rapidly increasing population

2.

Demand increasing due to growth of hotels and shops

3.
Fluctuations in the yield of sugarcane due to bad weather conditions and the attack of
pests and diseases.
4.

Low recovery of sugar from sugarcane

5.

Dispute between the growers and the mill owners.

6.
Only 40 % of the total yield is used for making sugar and rest is crushed for making Gur
(raw sugar).
7.

Political instability.

Cotton Textile Industry

(Market Oriented )

It is the largest industry of Pakistan. It provides employment opportunities to 50 % of industrial


labor force. It contributes 7 % of G.D.P. to the economy of our country and also a source of
foreign exchange. It has been established in different parts of our country i.e. Karachi,
Faisalabad, Hyderabad, Multan, Lahore and other small cities like Jhang.

Cotton Textile Industry As A System

Inputs Processes

Outputs

Natural / Physical

Spinning

e.g.

Flat Land (cheap & well drained)

Sizing / Weaving

Natural routes Singing & Desizing

Yarn, Towels.

Climate (moderate)

Bleaching

Hosiery.

Human Factors

Batching & Mercerizing

Capital Dyeing or Printing


Labor Finishing

Cloth, Garments.

Raw Material (Raw Cotton) Calendaring


Power Supply Cutting
Infrastructure Facilities (Gas & water)
Efficient Transport

Stitching

.Packing.

Machinery
Government Policies

Profit

Profit invested back into inputs

Q.1.

Two of the three main cotton textile manufacturing centers of Pakistan are situated

within areas which grow cotton. Name one of these centers.


Ans.

Faisalabad

Hyderabad.

Q.2. Explain why Karachi / Faisalabad are the largest cotton textile manufacturing centers in
Pakistan.
Ans.

Capital available from investors.

Cotton growing area in Indus valley of mid-Sindh accessible.


Major roads from cotton growing areas.
Railway from cotton growing areas.
Electricity from national grid / nearby power station.
Imported machinery enters Pakistan through the Karachi sea port.
Close to sea port / dry port for exports.

Large domestic market.


Government schemes (loans, EPZ, industrial estates).
Availability of labor.
Better infrastructure facilities.
Flat land.
International Airport.

Q.3.

Quetta is a market oriented cotton textile manufacturing center. What does this mean?

Ans.

Gateway for exports to Iran and Afghanistan.

Its main advantage is its local market.


There is large population to buy the products.
It is not a major producing area.

Q.4.

How may a cotton textile industry in Karachi / Faisalabad be affected by July floods

in the Punjab Province?


Ans.

Cotton crop may be ruined / yield much reduced by floods.

Communication may be damaged.


Supply of raw material may be insufficient.
Price of raw material may be increased.
Production (of cloth) may be less.
Loss of revenue.
Lose market.
Cannot pay / keep skilled workers.
May have to import raw material (cotton).

Q.5.

List the following in order of production:

Cloth Raw Cotton

Cotton Yarn

Ready-made Garments

Ans.

Raw cotton

Cotton Yarn

Cloth Ready-made Garments.

Q.6.

From the above answer state one product of:

A.

a processing industry. B.

Ans.

A.

a manufacturing industry.

A processing Industry

Cotton Yarn / thread or cloth.


B.

A manufacturing Industry

Cloth or Ready-made Garments.

Q.7.

Explain why Lahore is an important center of the textile industry.

Ans.

Cotton grown locally.

Machinery from HMC / Taxila.


Availability of labor.
Power supply.
Good transport.
Good telecommunication system.
Dry ports.
Export processing zone.
Industrial estates.
Big market.
Infrastructure facilities.

Q.8.

Why is a large proportion of the production of cotton textile industry exported?

Ans.

To make capital / improve trade balance.

To earn foreign exchange.


Good quality.
Good reputation of Pakistan.
Demand from abroad.
Popularity in the world.

Q.9.

How can Pakistan maintain and increase the exports of cotton textile industry?

Ans.

Improve quality.

More export processing zones.


More dry ports.
Machines to replace work.
New products.
Reliable supply.
Government incentives.
More large factories.
Better roads / communication.
Advertising.

Q.10. How does industry (cotton textile) in cities pollute the environment?
Ans.

Effluent in river (effect on fishing, drinking water and irrigation).

Effluent in sea water (effect on fishing e.g. Indus delta. Mangrove forest).
Smoke / gases in air (health problem, acid rain, global warming).
Traffic congestion in urban areas.
Waste form factories and people.

Loss of scenery by construction.


Noise pollution.

Q.11. How may a cotton textile factory in Karachi be affected by July floods in the Punjab?
Ans.

Cotton crop may be ruined / yield much reduced by floods.

Communications may be damaged.


Supply of raw cotton may be insufficient / delayed.
Production of cloth may be less.
Lose market.
Cannot pay / keep skilled workers.
May have to import raw cotton.

Q.12. What are the advantages and disadvantages of developing the cotton manufacturing
industry in Pakistan?
Ans.

Advantages.

Job opportunities.
Cheap labor available.
Value-added exports.
Less imports.
Can compete with other countries.
Good reputation worldwide.
Disadvantages.
Lack of modern skills / education.
Lack of money to invest.
Competition from other countries.

Old machinery. Power shortage.


Poor roads and railways / transport to ports.
Lack of investment in other industries.
Water shortage for manufacturing.
Machines will replace manpower / loss of unskilled jobs.

Study Fig.2, which shows the location of Faisalabad.

Fig.2

Q.14. State three factors shown on Fig.2, which influence the cotton industry in Faisalabad. For
each factor, explain its importance to the development of this industry.
Ans.

Irrigated Farmland

for raw cotton e.g. Rechna Doab.

Rivers / Barrages

supply water for washing cotton.

Road / Railway

for supply of goods, sales.

Dry port

for exports, transport to Karachi.

Thermal power

for electricity supply for machines etc.

Airportfor businessmen.

Study Fig.3.

Fig.3

Q.15. In recent years there has been little growth in the cotton textile industry. With reference to
Fig.3, explain the advantages and disadvantages of increasing cotton textile production in
Pakistan.

Ans.

Jobs

More available, can reduce unemployment, higher income, formal employment.


But.

Need for literacy and skills, may cause rural urban migration its consequences.

Skills
Beneficial to workforce, higher earnings.
But.

Shortage of training at the present time.

Competition
Will improve standards.
But.

Cannot compete, low quality of products, cheaper.

Trade
Increase trade, earn foreign exchange, improve balance of payments, pay off debts.
But.

Poor roads / rail, inadequate port facilities.

Technology
Good for development, can improve quality and or quantity.
But.

High cost, lack of skilled workforce, unemployment, shortage of power, more imports.

Infrastructure
Stimulates construction of better roads, railways, power supply, water supply.
But.

Higher cost, shortage of sources e.g. power, water.

Fertilizer Industry

Introduction:- Pakistan is an agricultural country which require large quantity of cow dung and
other natural manure. But they cannot meet the growing demand. Therefore chemical fertilizers
gain special importance and three types of chemical fertilizers are used namely Nitrogenous
fertilizers, Potassium fertilizers and Phosphorus fertilizers. The consumption of chemical
fertilizers has increased specially after green revolution. Production of chemical fertilizers in
Pakistan was started in 1960s. When industrial development corporation established two
fertilizer industries at Faisalabad and Daudkhel. Once natural gas was discovered in 1952 at sui
that too proved a rip source of chemical fertilizers and a factory was set up in Multan (Pak-Arab
Fertilizer Company). It started production in 1979. Since then Urea plants have been established
in Sheikhupura, Mirpur Mathelo, Haripur, Machigot, Dharki and a super phosphate plant at
Jaranwala.

Fertilizer Industry As A System

Inputs Processes

OutputsI

Natural / Physical

Preparation of raw material

Urea.

Flat Land (cheap & well drained)

Chemical reaction

Natural Gas, Nitrogen, Gypsum

Separation of Fertilizer

Sulphur, Potassium / Potash (i) Filtering

Potassium.

Phosphate, Ammonia, (ii) Evaporation


Fish / animal remains / bones (iii) Prilling
Climate (moderate)

(iv) Bagging / Packing

Human Factors
Capital
Labor
Machinery
Power Supply
Infrastructure Facilities (water)

Phosphorus.
Nitrogenous.

Efficient Transport
Government Policies

Profit

Profit invested back into inputs

Q.1.

Name two raw materials, apart from natural gas, which are used to make fertilizer.

Ans.

Nitrogen. Sulphur. Gypsum. Potassium / Potash. Phosphate. Ammonia.

Fish / animal remains / bones.

Q.2.

Explain why most fertilizer factories are in the Punjab and northern areas of Sindh.

Ans.

Main farming areas.

Fertile soil.
Good irrigation system.
Less flooding now to replace nutrients.
Large population to feed.
Good roads for transport.
Availability of raw material. i.e. Gypsum. Natural gas.

Q.3.

Why is it important that Pakistan manufactures its own fertilizers?

Ans.

Expensive to buy.

Reduce imports.
Improve balance of payments.
Produce more food for large population.

Produce more crops for exports.


Increases employment.

Q.4.

What environmental damage can occur when a new fertilizer factory is built in a

Rural area?
Ans.

Loss of farmland.

Damage to roads.
Water pollution.
Noise pollution.
Soil erosion.
Traffic congestion.
Dumping of waste.

Study the Fig.4, which shows the location of fertilizer Industry in Pakistan.

Fig.4

Q.5.

Describe the distribution of Fertilizer Industry in Pakistan.

Ans.

Widespread. Along the rivers. Upper Indus Plain. North side of Sindh Province.

One in NWFP. None in Balochistan and in northern areas.

Study Fig.5, which shows fertilizer production in Pakistan.

Fig.5

Q.6.

By how much did fertilizer production increase from 2000 to 2008?

Ans.

1.0 1.2 / 1000 1200.

Q.7.

Compare the production from 1990 and 2000 to that from 2000 to 2008.

Ans.

More variable 1991 2000 than 2000 2008.

Overall rate of increase .


3.0 4.6 / 1.6 million tones compared with 4.6 5,7 / 1.0 2 million tones.

Q.8. What are the benefits of increasing fertilizer production for the people and the economy
of Pakistan?
Ans.

Higher yields.

More food production.


More agricultural exports.
Reduced imports of fertilizer, or improved balance of payments.
Less GNP. Higher farm incomes / profits.
More jobs.
Cheaper cost of fertilizer.
More industrial goods (e.g. cotton).

Iron and Steel Industry (Capital Intensive)

Introduction:- The established of iron and steel industry is considered to be a milestone road to
industrialization. Pakistan steel mill corporation with technical and financial assistance from
USSR (Union of Soviet socialist Republic). It was established in December 1973.

It is located about 40 kilometers east of Karachi at Pipri on Gharo Creek near Prot Bin Qasim.
The capital cost of steel complex was 25.5 billion rupees. The steel mill covers an area of about

75.4 km2 including 38.9 km2 of steel town ship (residential area of workers). The production
capacity of Pakistan steel mill is 1.1 million tones of steel annually and has a potential to expand
to over 3 million tones.

Iron ore and Coal used as a raw material in this industry, But both raw materials are not enough
in Pakistan so we import from abroad. We import iron ore from Australia, Brazil, India and
Liberia and coal from Australia.

Iron and Steel Industry As A System

Inputs Processes

OutputsI

Natural / Physical

MiningSheets.

Flat Land (cheap & well drained)


Rolled & cast Billets.

Concentration Plates. Limestone. Water

Manganese. Coal (Anthracite)

Reduction

Coils.

Girders.

Galvanised Products.

Chromite

Refining

Climate (Moderate)
Human Factors
Capital
Labor
Machinery
Power
Technology
Efficient Transport
Skills.

Profit

Slabs.

Casting

Grinding

Profit invested back into inputs

Q.1.

Name three raw materials used in the Pakistan Steel Mills.

Ans.

Iron ore, coal, limestone, manganese, chromite.

Q.2.

Why are most of the raw materials imported?

Ans.

Iron ore not mined in Pakistan.

Coal poor quality.


Small output / lack of development of resources.

Sponser Ads

Study Fig.6, which shows the location of Pipri Steelworks.

Fig.6

Q.3.

With reference to Fig.6, explain why the steel mills were located here.

Ans.

Coastal site / Port (Bin) Qasim for imports

Berths by creek for unloading


Widened channel for effluent / shipping
Railway / road for supply of limestone / workers and for distribution of finished products
Township / houses for workers
Large / open site for waste disposal, storage, building etc.

Read the extract below.


Imports of steel increased by 37 % from 2004 to 2005 as a growing amount of machinery and
industrial steel products flowed in. This is more than any government predictions.

Q.4.

Explain the advantages and disadvantages of increasing steel production in Pakistan.

Ans.

Advantages.

Cheaper supplies ( than imports)


Saves foreign currency / improve balance of payments / reduce imports
Can be used for development / industrialization e.g. construction, machinery
Larger GNP
Independence from other countries
Employment opportunities.

Disadvantages
Lack of raw materials
High cost of imported iron ore / other raw material
Burden on economy / less development
Cost / lack of machinery / technology
Cost / lack of infrastructure / power supplies / roads etc.
Lack of skilled labor
More waste / named pollution
May encourage rural-urban migration

Q.5.

Explain how human inputs such as those can improve production.

Ans.

Labor. Work machine, carry materials, office work.

Capital.

Wages, machines, technology, investment.

Machinery.

Faster, better quality, new products.

Skills. Computers, office work, machines.


Technology.

Quality, speed, modernization.

Transport.

Faster, larger supply, bigger markets.

Power. Efficiency, speed, quality.


Govt. policies. Tax concessions, training.

Q.6.

Why is over 50 % of the output of Pakistan Steel sent north from Karachi to the

Punjab?
Ans.

Construction of buildings / Bridges.

Machinery for industry.


To Taxila.
Heavy engineering.

Q.7.

Why is coal imported for iron and steel industry?

Ans.

Poor quality of local coal.

Mixed with local coal.


Not enough local coal.

Q.8.

What features of Pakistan Steel show that it is an industry in the formal sector?

Ans.

Large scale industry.

Good quality goods.


Capital intensive.

Regular working hours.


Regular wages.
Legal and registered.
Employed labor.
In office / factory.
Skilled labor.
Mainly men.
Pension scheme.

Other than steel making a number of engineering plants are working in the country detail of the
some is given below.

A Heavy Mechanical Complex

This complex was established at Taxila with Chinese help in 1979 and it has an annual capacity
of 60,000 tones. Its main products are sugar mills equipment, cement factory machinery,
overhead traveling cranes, road rollers, Truck chasses and low pressure package type boilers.

Pakistan Machine Tool Factory

This was established at Karachi in 1968 with Swiss help, now it has grown into a sophisticated
engineering complex. Its main products are engineering tools, transmission components and
automotive parts.

A Heavy Foundry and Forge Complex

This was set up at Taxila with Chinese help in 1976. Its has steel melting capacity of 60,000
tones. Its mainly fulfills the needs of railways and automobiles and produce heavy machinery as
well.

Karachi Shipyard and Engineering Works

It was started in 1956 and it can built and repair ships. Other than the local it also serves the
foreign orders.

Cement Industry (Raw material Oriented)

Cement is key factor in economic development of the country. There are many favourable factors
for the development of cement industries. e.g.

1. Availability of raw material (Limestone and Gypsum).


2. Good domestic market with high demand from the construction industry.
3. Natural gas is used as a cheap fuel.

At the time of independence, Pakistan had 5 cement factories and was the exporter of cement.
But with the development work starting in Pakistan the country became an importer of cement.
Now there are 24 cement units are working in the country. Out of these 24 units, 4 units are in
the public sector and the rest are in the private sector.

Although the cement industry is based on local raw material. however, there is rising trend in the
price of the cement for the last few years. The main causes are (i) decline in production (ii)
General inflationary trend in the country.

The cement industry is wide spread in the country due to availability of raw material. The

following are 24 cement factories located at various parts of the country specially in all the
provinces e.g. Dandot. Gharibwal. Attock. Mianwali. Daud khel. Rawalpindi. D.G.khan. in
Punjab province. Hazara. Kohat (NWFP) Karahci. Sukkur. Hyderabad. Thatta. (Sindh) Kalat
(Baluchistan).

Cement Industry As A System

Inputs Processes

OutputsI

Natural / Physical

Grinding

Limestone

Heating

Gypsum. Water

Slabs.

Sand.
Human Factors
Capital
Labor
Machinery
Power
Technology
Efficient Transport
Skills.
Packing Material

Profit

Cement Powder

MixingCement Blocks.

Natural gas / Coal Packing


Clay / Shale

Cement.

Bricks.

Profit invested back into inputs

Fig.7 shows how cement is made.

Fig.7

Q.1.

State three natural inputs that are needed to make cement.

Ans.

Limestone. Gypsum / Calcium sulphate. Natural gas / Coal. Clay / shale.

Water. Sand.

Q.2

Explain the importance of three human inputs at a cement factory.

Ans.

Electricity for power.

Road / railway for transport.


Labor for good production.
Telecommunication for supply / sales.
Machinery for fast / efficient production.
Capital for investment.

Q.3.

Why is there a large demand for cement in Pakistan?

Ans.

Domestic construction e.g. houses.

Industrial construction e.g. Factories.


Institutional buildings / schools / hospitals / offices.
Communication e.g. roads. Bridges. railway sleepers.
Port developments.
Water management e.g. Dams. canals. embankments.

Pakistan has insufficient timber.


Pakistan has insufficient steel.
Pakistan has huge deposits of limestone to make cement.

Study the Photograph. A, showing a cement factory near Ghulamullah, in Thatta District.

Q.4.

Describe the scene in the photograph.

Ans

Flat.

Rough road to factory.


Vegetation in background.
Chimney.
Smoke / Dust / air pollution.
Stones / rocks.
Tyre tracks.

Q.5.

Explain how industries can pollute river and sea water.

Ans.

Effluent / liquids.

Dumping / solids.
Sewage / garbage. e.g. dying and tanning industry.
Hot water from power stations.
Oil spills.

Q.6.

Explain how this pollution effects farming, fishing and wildlife.

Ans.

Contamination of sub-soil water and irrigation.

Contamination of mangrove environment.

Toxic chemicals cause mutation and death.


Entering food chain.
Oil kills sea birds.
Eutrophication reduces oxygen.

Q.7.

How does industry in cities pollute the environment?

Ans

Effluent in river effect on fishing, drinking water, irrigation.

Effluent in sea water effect on fishing e.g. Indus delta, mangroves.


Smoke / gasses in the air health problem.
Traffic congestion in urban areas.
Loss of scenery by construction.
Waste from factories.
Cottage Industry:

The industries in which the owner is self employed and helped by the family members only.
Small Scale Industry:

In such industries mechanical power is used with a limited number of hired labor along with the
family members. If electricity is used, then the number of workers are 20 and if not used then the
number of workers are 50.

Both type of industries contribute 5 % to GDP and hold an important position in the rural setup.
Most villages are self sufficient in the basic necessities of life. They have their own carpenter,
Blacksmith, Potters, Craftsmen and cotton weavers. Many families depend on cottage industries
for their income. There are also considered important export items and are in good demand in
international markets.

Types of Cottage and Small-Scale Industries:


Carpets, Textiles, Embroidery, Jewellery, Ceramics, Woodwork, Metal-work, Sports goods and
Surgical Instruments.

Characteristics (Cottage and Small-scale Industries) e.g.(Carpets. Sports goods. Woodwork)

Small-scale / Cottage industry


Craft industry
Traditional skills are used
Labor intensive
Simple machinery is used
Use local raw material
Local specialization
Possible exports
Sales to tourists
Encouraged by the government
Work done in homes / small workshops.

Advantages (of cottage and small-scale industries / Why is it important to encourage cottage and
small-scale industries).

1. Employment opportunities.
2. Meets the demand of the local markets.
3. Source of foreign exchange earnings.
4. Employment for women.
5. Reduce rural urban migration.

6. Makes use of industrial waste.


7. Little burden of imports.
8. Good use of local raw material.
9. Less capital and less technology is involved.
10. Reduces regional disparity.

Problems (Cottage and Small-scale Industries)

1. Shortage of raw material in some rural areas.


2. Lack of proper marketing.
3. Production methods and machinery are outdated.
4. Lack of standardization and quality control.
5. Lack of coordination between different industries also creates difference in price.
6. Lack of capital.
7. Less profit due to high cost of production.
8. Non availability of electricity.
9. No facility of loans.
10. Provision of technical advice and further training is limited.

Government Policy towards cottage and small-scale industries / Steps to improve the cottage and
small-scale industry.

The Government is fully aware of the potential of cottage and small-scale industries for
industrial development. The development of these industries is the responsibility of the Provinces
and each province has set up an organization.

The following organizations have been established to develop this sector of economy.
1. Pakistan Small Industries Corporation (PSIC)
2. Punjab Small Industries Corporation (PSIC)
3. The Small Industries Development Board NWFP (SIDB)
4. The Directorate of Small Industries Baluchistan (DSIB)
5. Sindh Small-scale Industries Corporation (SSIC)
6. Small and Medium Enterprises Development Authority (SMEDA)

Main Functions of these Organizations:

1. Establishment of the small Industrial Estates.


2. Providing marketing facilities.
3. Setting up of technical service centers.
4. Establishing handicraft development centers and carpet centers.
5. Providing guidance to the new comers.
6. Providing loan on easy installments through IDBP.
7. Training facilities to male and female.
8. Samples exhibition.
9. Providing marketing facilities.

Inputs of (Sports goods, Carpets, Woodwork industry)


Capital, Machinery, Raw material, Power, Labor.

Areas:

1.

Sports goods: Sialkot (Exported to USA, UK, Canada, EU).

2.

Surgical instruments: Sialkot and Lahore (Exported to USA, UK, UAE, Germany).

3.

Embroidery

Karachi. Hyderabad. Quetta. Multan. Bahawalpur. Lahore

Peshawar.

Q.1.

Name an example of a craft industry.

Ans:

Sports goods. Jewellery. Embroidery. Ceramics. Woodwork. Pottery. Metalwork.

Q.2.

In what ways is this type of industry important to the local economy?


Employment opportunities.

Ans:

Employment of women.
Meet demand of local market.
Reduces rural urban migration.
Use local raw material.
Uses waste material.
Cheap to set up.
Earns money for the local community.

Q.3. Name a city in Pakistan where sports goods are manufactured.


or Lahore.

Q.4.

How may the presence of the sports industry in this area

Increase employment opportunities?

Improve the local infrastructure?

Ans:

Increase employment opportunities?

(N.o6) Ans:

Sialkot

Labor intensive
Growth of administrative jobs
Growth of transport jobs
Dry port
Export processing zones
Growth of tertiary industries
B

Improve the local infrastructure?

Power / electricity supply


Roads / Railway
Better water supply
Telecommunication
Dry port

Q.5. With reference to rural and urban areas in Pakistan, Describe and account for the main
features of cottage and small-scale industries. (J.97)
Ans: Mostly industries in rural areas. Small unit. Owner is self-employed and helped by the
family members. Traditional methods are used. Simple machinery is used. Less power used.
Small investment. e.g. Sports goods, Carpet.

Q.6. Explain why cottage and small-scale industries are important to both rural and urban
areas and also to the country of Pakistan.
Ans:

Employment opportunities.

Increase rural income.


Improve standard of living.
Check rural urban migration.
Some products exported to abroad and earn foreign exchange.
Better use of local raw material.

Jobs for women.


Meets the local demand.
Increase per capita income.

Q.7.

What is the main raw material used in the production of food balls and cricket bat?

Ans.

Foot Balls:-

Leather / plastic.

Cricket Bat:- Wood.

Q.8.

Which city in the northern Punjab is a centre of sports goods manufacturing?

Ans.

Sialkot / Lahore.

Q.9.

Why have small-scale industries such as sports goods developed in this area?

Ans.

Easy to set up, no expensive machinery, low capital input.

Labor. Locals skills, increase employment opportunities.


New materials available.
Air port at Sialkot.
Better road and railway.
Power supply.
Punjab is the most industrialized province.
Supply tourists.
Dry port at Sialkot / Lahore.

Q.10. Why is a large proportion of the production of this industry exported?


Ans.

To make capital / improve trade balance.

To earn foreign exchange.

Demand from abroad.


Popularity of sports in the world.
Competitive price / good quality.
Good reputation of Pakistan.
Less need in Pakistan / greater need abroad.

Q.11. How can Pakistan maintain and increase its exports of sports goods?
Ans.

Improve quality.

More export processing zones.


More dry ports.
Modernization / machines to replace hand work.
Training.
Innovation / new products.
Regular supply.
More factories / government incentives.
Better roads / airports / telecommunication.
Advertising.
Do deals with companies. e.g. Adidas

Q.12. Explain what is meant by a small-scale or cottage industry.


Ans.

Small production.

Traditional skills.
In homes / on the streets / not in factories.
Lack of machinery.
Women workers / family workers.

Self-employment.
Low profits.
To meet local demand.
For tourism.
Local raw materials.
Low capital input.
Use waste products.

Q.13. Explain the importance of mechanization to the craft industry and other small-scale
industries of Pakistan.
Ans.

Faster.

Larger production.
Lower labor cost / cheaper.
Standardised products.
Can replace child labor.
New skills learned.
Unemployment. Loss of traditional skills.

Nationalization of Industries:

In 1972, adopting the principle of nationalization there was a major change in government
policy. The transfer of 10 basic industries to the public sector. The following industries were
nationalized.
1. Iron and steel industries.
2. Basic metal industries.
3. Heavy engineering industries.

4. Heavy electrical industries.


5. Assembly and manufacture of motor vehicles.
6. Heavy and basic chemical industries.
7. Petrochemical industries.
8. Cement industries.
9. Public utilities.

Advantages of Nationalization

To nationalize the industry first..


To speed up the process of industrialization.
Gain more profit.
Maintain the standard and quality of goods.
Better look after.
Better use of local raw material.
Price controlled.
To increase export and earn foreign exchange.

Disadvantages of Nationalization.

Slow pace of production.


Corruption (social evils).
Low standard of goods.
Limited variety.
Lack of foreign exchange.

Less competition in international market.

Denationalization.

In 1977 the government reversed its industrial policy. The Martial Law Government gave
assurances that no further industries would be nationalized. Many of the nationalized industries
were given back to their former owners.

Advantages:
No corruption.
Production of high quality goods.
More variety.
More foreign investment.
Competition in worlds market.

Decentralization

To establish industry only in rural areas.

Advantages:
Provide employment.
Development of the area.
Better use of local labor.
Better use of local raw material.
Stop of rural urban migration.
Privatization

The privatization of State Owned Enterprises (SOE) has been promoted since 1991. The policies
of liberalization and deregulation are followed all over the world.

Objectives of Privatization

1 To create better opportunities for the private sector for expansion and modernization.
2. To improve productivity and profitability.
3. To reduce the burden on the governments economic resources.
4. To facilitate economic activities for the private sector.
5. To achieve more rapid industrialization.

Characteristics of formal sector of industries ( Large scale )

Large scale industry.


Good quality goods.
Investment of capital.
Regular working hours.
Regular wages.
Legal and registered.
Employed labor.
In office / factory.
Skilled labor.
Mainly men.
Pension scheme.

Incentives (e.g. health care, education)

Characteristics of informal sector of industries ( Small-scale )

Self employed.
Labor Intensive using mainly hand tools.
Very few modern machines are used.
Irregular working hours and uncertain wages.
Often low standard in quality of goods.
Work done at home / on the streets.
Often non-registered.
Mostly females and children.

Industrial Problems

Lack of technical education.


Lack of capital.
Scarcity of minerals.
Problem of industrial labor.
Political instability.
Power break down / load shedding.
Disposal of industrial waste.
Tough competition in the international market.
Industry to market access.

Solution

Promotion of technical institutes, especially IT.


Incentives to foreign / local investors.
Development of alternative resources.
Careful conservation of power resources of country.
Proper treatment of waste before dumping.
Strict quality control.
Sites with better transportation links.

Raw Material:

A product obtained directly from the ground or Sea. e.g. farming, forestry, mining.

Raw materials are the basic commodity from which finished goods are made. They may be
Primary, Processed or manufactured products.

Water and the output from agriculture, fishing, forestry and mining are all primary resources raw
materials. Most of the agricultural products may be used as raw materials. Wheat is the main raw
material in baking products (bread, biscuits). The Cotton textile industry processes raw cotton
into yarn and then into cloth. Oilseeds are processed into edible oil by the vegetable oil industry.
Crude oil can only be used as a power source after processing.

Sustainable primary resources include timber and water. Timber is the raw material for furniture,
Paper and varnish industries. Water is used to drive turbines for HEP production and is an
important raw material in many industries such as the soft drinks industry.

Metallic minerals (gold, silver, iron, copper) and non metallic minerals (gypsum, limestone,
marble, sulphur) serve as raw material in many industries like iron and steel, chemical, cement.

A raw material is not confined only to Primary products but some of the Secondary (processed)
Products also serve as raw materials. For example, wheat flour is a processed product but it is the
raw material in a bakery where it is further processed to make bread or biscuits. Wood pulp and
cotton yarn are also processed materials that are raw materials. Cotton yarn is used to make
cotton cloth.

Cotton cloth is then an example of a manufactured raw material which can be further
manufactured into garments. Industries which use agricultural products as their raw materials are
called agro-based industries; they include cotton textile, woolen industries, sugar industries and
fruit juices.

Q1.

Describe the factors that have helped and those that have hindered the production

of raw material.
Ans.

Advantages and disadvantages may be related to

Size of the area / deposits.


Relief.
Climate.
Soils / rocks.
Availability of machinery.
Power / fuel supply.
Labor.
Transport.